SINGAPORE, Dec 15 (Reuters): Gold prices touched a 10-day high on Thursday as the US dollar and Treasury yields slipped after the Federal Reserve signalled an end to its monetary policy tightening cycle.
Spot gold rose 0.4 per cent to $2,034.31 per ounce by 3:17 p.m. ET (2017 GMT). US gold futures settled 2.4 per cent higher at $2,044.90.
"Fed's dovish pivot was telegraphed over yesterday's FOMC meeting and very pragmatically gave a green light for markets to price in a more aggressive Fed cutting cycle on the horizon, and we expect that the market will run with it," said Daniel Ghali, commodity strategist at TD Securities.
"This is extremely positive for gold prices, given that investor demand was one of the missing pieces for the rally to new all-time highs to be sustained."
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar.
The dollar slipped to a four-month low, while the US benchmark 10-year yield dropped to its lowest level since late July.
Seventeen of 19 Fed officials projected lower interest rates by end-2024, after the central bank kept interest rates steady for the third meeting in a row, as was widely expected.
Gold touches 10-day high
FE Team | Published: December 16, 2023 00:20:06
Gold touches 10-day high
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